News / Economy

Industry Group: Venezuela Agrees to Repatriate $3.8B Airline Revenues

FILE - Airplanes wait their turn to take off on a runway of the Simon Bolivar airport in La Guaira, outside Caracas.
FILE - Airplanes wait their turn to take off on a runway of the Simon Bolivar airport in La Guaira, outside Caracas.
Reuters
Venezuela's government will allow foreign airlines to repatriate $3.8 billion in ticket sales revenues that had been stuck inside the country due to currency controls, Venezuela's airline industry association said on Friday.
 
The South American nation requires airlines to bill tickets in the local bolivar currency. For close to two years the state currency board has denied airline requests to convert ticket sales revenues into hard currency and repatriate the funds.
 
The Venezuelan Airlines Association, or ALAV, said the government had promised to recognize the full amounts of ticket sales revenues using the exchange rate in place at the time the fares were sold.
 
The group's president, Humberto Figuera, said the funds would be progressively released between now and the end of 2015.
 
Government officials had previously suggested airlines would have to repatriate the revenue at a considerably weaker exchange rate created through a newly launched currency platform, which would have implied losses of up to 90 percent.
 
The International Air Transport Association, or IATA, said in an interview this week that some airlines were considering ceasing operations because of the frozen funds and that the government had in the past promised to allow the funds to be repatriated.
 
Alternative solutions including payment in bonds or fuel were discussed but never implemented, IATA Chief Executive Tony Tyler said. Within the past year, 11 airlines that have been flying to Venezuela have reduced their operations by between 15 percent and 78 percent, he said.
 
Air Canada suspended its operations this month, citing security concerns related to street protests, and Venezuela immediately cut ties to the airline.
 
Major airlines flying to Venezuela include American Airlines , Lufthansa, Delta, Avianca  and Copa.

You May Like

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. More

Video Sudan School Becomes Target of Aerial Attacks

Dropout rate at an all-time high in South Kordofan state because many schools have been destroyed during 3-year civil war More

Tennessee Songbirds Fly Coop Long Before Tornadoes Arrive

Researchers say birds apparently alerted to danger by sounds at frequencies below range of human hearing More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
US: Response to Sony Hack Will Be Proportionali
X
Aru Pande
December 19, 2014 1:45 AM
The White House says President Barack Obama considers the cyberattack on Sony Corp. a serious national security matter and that the U.S. will counter with an "appropriate response." VOA correspondent Aru Pande reports.
Video

Video US: Response to Sony Hack Will Be Proportional

The White House says President Barack Obama considers the cyberattack on Sony Corp. a serious national security matter and that the U.S. will counter with an "appropriate response." VOA correspondent Aru Pande reports.
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Putin Says Russian Economy Will Emerge Stronger

Russian President Vladimir Putin has said his country's sinking economy will not only recover but also become stronger, despite falling oil prices and Western sanctions over Ukraine. VOA's Daniel Schearf reports.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8140
JPY
USD
118.81
GBP
USD
0.6402
CAD
USD
1.1597
INR
USD
63.066

Rates may not be current.